Castleberry, Alabama, a town with a population of 1,739 as of 2022, has a Low-Income Housing Tax Credit (LIHTC) funded affordable housing inventory of 24 units. These units, all designated as low-income, represent approximately 3.6% of the town's estimated 666 housing units. The town has received $33,600 in project tax credits from the LIHTC program for affordable housing, which translates to an average federal funding of $33,600 per project and $1,400 per unit. Castleberry holds 0.02% of Alabama's total state LIHTC funding.

The affordable housing project in Castleberry, known as Hillcrest Apartments, was completed in 1994. This single project constitutes the entirety of LIHTC-funded affordable housing in the town over the past three decades. Hillcrest Apartments consists of 24 units, with a mix of 8 two-bedroom and 16 three-bedroom apartments, designed to accommodate different family sizes within the low-income population.

Over the past decade, Castleberry's population has fluctuated, reaching a peak of 2,448 in 2019 before declining to 1,739 in 2022. Despite these population changes, no new LIHTC projects have been developed during this period. The town's median income has shown an upward trend, increasing from $21,921 in 2013 to $45,838 in 2022. This rise in median income may partially explain the absence of new LIHTC developments, as the overall economic situation of the town's residents may have improved.